Northwest History. State History. Box 37. National Topics.

The Washington
Merry-Go-Round
WASHINGTON, May 22,
The Wall street drive against
the securities act has not abat-J
ed a bit. But as congress draws
toward its close, the fight has
taken a more subtle turn.
The latest was a move made
through the unsuspecting and sometimes slightly gullible Henry Morgen-
thau, who, while heartily for the securities act, doesn't want to see the
flow of private capital curtailed.
So last week, young Henry invited
Senator Fletcher, Rock of Gibraltar
chairman of the banking and currency
committee, to lunch. At lunch also
were various New York bankers. The
strategy the bankers outlined briefly
was this:
To relieve underwriting houses from
any liability under the securities act.
This would mean that a big underwriting house, as for instance J. P.
Morgan & Co., would underwrite
an issue but not distribute it. The
distributing houses would be liable for
losses under the securities act, but
not the underwriting house.
The catch, however, is that salesmen of the bonds immediately would
whisper: "This is underwritten by
the House of Morgan," which might
carry real weight.
Old Senator Fletcher listened carefully to the plan, proved the granite
wall he has been ever since the banking investigation started. He said:
««No."
Comfortable Attire.
Farm-born and reared, Henry
Wallace makes no pretense at being; a Beau Brummel.
Employees of the agriculture
department over which he presides never are surprised to see
him with his tie askew, a forelock hanging over his nose, and
clothes dishevelled.
But they were astonished the
other day when the secretary of
agriculture calmly padded in his
socks throurh the corridors of
their building to his private office.
Wallace had not gone "native."
What had happened was that he
had spent a part of his lunch
hour playing tennis on a public
court in near-by Potomac park,
when a messenger hurriedly
called him to answer a phone call
from the White House. His tennis
shoes hurting him, Henry had
removed them, walked the short
distance in his stockinged feet.
Merry-Go-Round.
California's congressional delegation I
is buzzing with a story of an alleged
republican "plot" revolving around
Senator William Gibbs McAdoo. . . .
During McAdoo's recent illness (he is
now well on the road to recovery)
certain California republican moguls |
got together and decided that i:
event of McAdoo's demise they would I
propose to Republican Governor
Rolph that he name movie magnate
Louis Mayer to the vacancy. . .
Mayer, a strong Hooverite, led the e
president's forces in California in tl
disastrous 1932 campaign. . . .Friends!
of Comptroller of the Currency
" Jef ty" O'Connor are still joshing him
over a recent embarrassing experience
he underwent in Jackson, Miss. .
"Jefty" and RFC Chairman Jesse I
Jones were speakers at a large gathering in the southern city, with Jones
as the first orator. . . . " Jef ty" didn't
arrive until after Jesse finished. When |
he unfolded his manuscript and began I
speaking, the startled audience discovered that it was word-for-word the!
same speech Jesse had just made. .
Both officials got their addresses from
the canned-speech factory of
democratic national committee.
State department archive officials say
that President Roosevelt is continuing
longer than any of his recent predecessors in signing his full signature.
. . . Usually after a few months, chief
executives start abbreviating their
names, but not Roosevelt. , . . Al
though he signs official papers for a
least half an hour each day, he stil J
writes: "Franklin D. Roosevelt.'!
(Copyright.)

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The Washington
Merry-Go-Round
WASHINGTON, May 22,
The Wall street drive against
the securities act has not abat-J
ed a bit. But as congress draws
toward its close, the fight has
taken a more subtle turn.
The latest was a move made
through the unsuspecting and sometimes slightly gullible Henry Morgen-
thau, who, while heartily for the securities act, doesn't want to see the
flow of private capital curtailed.
So last week, young Henry invited
Senator Fletcher, Rock of Gibraltar
chairman of the banking and currency
committee, to lunch. At lunch also
were various New York bankers. The
strategy the bankers outlined briefly
was this:
To relieve underwriting houses from
any liability under the securities act.
This would mean that a big underwriting house, as for instance J. P.
Morgan & Co., would underwrite
an issue but not distribute it. The
distributing houses would be liable for
losses under the securities act, but
not the underwriting house.
The catch, however, is that salesmen of the bonds immediately would
whisper: "This is underwritten by
the House of Morgan," which might
carry real weight.
Old Senator Fletcher listened carefully to the plan, proved the granite
wall he has been ever since the banking investigation started. He said:
««No."
Comfortable Attire.
Farm-born and reared, Henry
Wallace makes no pretense at being; a Beau Brummel.
Employees of the agriculture
department over which he presides never are surprised to see
him with his tie askew, a forelock hanging over his nose, and
clothes dishevelled.
But they were astonished the
other day when the secretary of
agriculture calmly padded in his
socks throurh the corridors of
their building to his private office.
Wallace had not gone "native."
What had happened was that he
had spent a part of his lunch
hour playing tennis on a public
court in near-by Potomac park,
when a messenger hurriedly
called him to answer a phone call
from the White House. His tennis
shoes hurting him, Henry had
removed them, walked the short
distance in his stockinged feet.
Merry-Go-Round.
California's congressional delegation I
is buzzing with a story of an alleged
republican "plot" revolving around
Senator William Gibbs McAdoo. . . .
During McAdoo's recent illness (he is
now well on the road to recovery)
certain California republican moguls |
got together and decided that i:
event of McAdoo's demise they would I
propose to Republican Governor
Rolph that he name movie magnate
Louis Mayer to the vacancy. . .
Mayer, a strong Hooverite, led the e
president's forces in California in tl
disastrous 1932 campaign. . . .Friends!
of Comptroller of the Currency
" Jef ty" O'Connor are still joshing him
over a recent embarrassing experience
he underwent in Jackson, Miss. .
"Jefty" and RFC Chairman Jesse I
Jones were speakers at a large gathering in the southern city, with Jones
as the first orator. . . . " Jef ty" didn't
arrive until after Jesse finished. When |
he unfolded his manuscript and began I
speaking, the startled audience discovered that it was word-for-word the!
same speech Jesse had just made. .
Both officials got their addresses from
the canned-speech factory of
democratic national committee.
State department archive officials say
that President Roosevelt is continuing
longer than any of his recent predecessors in signing his full signature.
. . . Usually after a few months, chief
executives start abbreviating their
names, but not Roosevelt. , . . Al
though he signs official papers for a
least half an hour each day, he stil J
writes: "Franklin D. Roosevelt.'!
(Copyright.)